According to a report released by the Federal Reserve recently, more than 700 banks in the United States are at risk because of the large floating losses on their balance sheets. The Fed said the rate hike was the catalyst for massive losses at U.S. banks.
More than 700 U.S. banks are facing “significant safety and solvency” risks due to large unrealized balance sheets, which have reported losses of more than 50% of their capital, according to the Fed report. The Fed pointed to higher interest rates as the catalyst for losses at these U.S. banks. Changes in monetary policy and rising interest rates have had a negative impact on banks’ balance sheets, and the financial position of many banks has become more precarious. While the banks have been taking steps to prevent further losses over the past few months, large floating losses on banks’ balance sheets have limited their ability to lend and meet obligations. In addition, higher-than-expected deposit outflows and limited emergency funding could force these banks to make difficult decisions, such as relying on more foreign exchange reserves. Therefore, Bank of America needs to take necessary measures to reduce risks and protect its own safety and solvency.
Fed: 46% of U.S. banks plan to raise lending standards
According to another report released by the Federal Reserve recently, due to concerns about economic prospects, credit quality, financing liquidity and deposit outflows, 46% of American banks plan to increase lending standards to reduce the risks borne by banks. The survey report shows that under the impact of interest rate hikes, the credit environment in the United States is worrying, and regional banks are still facing severe liquidity pressure. U.S. banks saw tighter commercial and industrial lending standards and weak demand for businesses in the first quarter. At the same time, the review criteria for all commercial real estate loan categories have been tightened. U.S. Treasury Secretary Yellen said on the 13th that the current banking environment and profitability pressures may lead to a certain degree of mergers in some regional and mid-sized U.S. banks, and U.S. regulators may be open to such mergers. Analysts pointed out that under the Fed’s high interest rate policy, the banking crisis continued to ferment, and the tightening of bank credit may have just begun. Global risk premiums will rise sharply once unusually tight lending standards start to have a significant impact on global growth, and that will happen very quickly.
[
责编：杨煜 ]